[Aniket Aggarwal is a commercial litigator and technology lawyer practicing in New Delhi] A prima facie look at the Prevention of Money Laundering Act, 2002 [“PMLA” or “the Act”] and the Insolvency and Bankruptcy Code, 2016 [“IBC” or “the Code”] belies exclusivity and distinctness between the legislations. Indeed, the Delhi High Court observed these laws to be consistent with each other in light...
SPAC Listings in India: Regulatory Hurdles and the Way Forward
[Devarsh Shah is a third-year law student at Gujarat National Law University] One of the most significant developments in the international capital markets in the past couple of years has been the revival of ‘Special Purpose Acquisition Vehicles (SPACs)’. In 2020, around $80 billion was raised in the US by 247 SPACs representing almost 50% of the raised capital of about $174 billion. While SPAC...
India’s Struggle with Public Procurement Regulations
[Jishnu M Nair is a Senior Attorney at IBM India/South Asia. The opinions are personal views of the author and do not necessarily represent IBM’s positions, strategies or opinions] Public sector procurement forms around 22 percent of India’s total GDP, with the Government’s total procurement, spend running at around $417 billion. On an earlier estimate, the Government’s IT spend...
A Case for Exclusion of Schemes of Arrangement from Liquidation
[Sikha Bansal is a Partner at Vinod Kothari & Company] The concerns around schemes of arrangement under section 230 of the Companies Act, 2013 in the background of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC) have been partly addressed with the ruling of Supreme Court (SC) in Arun Kumar Jagatramka v. Jindal Steel and Power Ltd. The SC has held that the...
Supreme Court on the Validity of Ipso Facto Clauses during Insolvency
[Ridhi Arora is a III Year B.A., LL.B (Hons.) student at Gujarat National Law University and Varun Singh a III Year B.A., LL.B (Hons.) student at Rajiv Gandhi National University of Law] On March 8, 2021, the Supreme Court of India in Gujarat Urja Vikas Nigam Limited v. Amit Gupta ruled that the provisions of the Insolvency and Bankruptcy Code, 2016 (‘IBC’) prevail over power purchase agreements...
Arbitration of Consumer Disputes in India: A Need for Reform
[Pavitra Naidu & Shreya Jain are 4th year B.B.A., LL.B. (Hons.) students from Jindal Global Law School, Sonipat] The case of Emaar MGF v Aftab Singh was a landmark in the issue of arbitrability of consumer disputes. However, with India striving towards a pro-arbitration regime, delving into the possibility of arbitration of consumer disputes in India becomes imperative. This post will...
The SPAC-tacular rise of Blank Check Companies in India?
[Poojita Saxena is a 4th year law student at the National Law Institute University, Bhopal] One of India’s leading renewable energy companies, ReNew Power, recently announced the execution of a definitive business combination agreement with RMG Acquisition Corporation II. The USD 8-billion transaction enables the combined power generation company to get listed on NASDAQ by the second quarter of...
Fragmented Framework for Perfection of Security Interest: A Secured Creditor’s Nightmare?
[Sikha Bansal is a Partner and Siddharth Goel a Legal Advisor at Vinod Kothari & Company] An interesting question of law came up for consideration by way of appeal before National Company Law Appellate Tribunal (NCLAT) in Volkswagen Finance Private Limited v. Shree Balaji Printopack Pvt. Ltd . The brief facts of the case involved a car financing company, which extended a car loan to the...
Classification of Advance Payment Claims as Operational Debt: Intention Test
[Kartik Adlakha is a final year B.B.A., LL.B. (Hons.) student at Jindal Global Law School] Insolvency and Bankruptcy Code (‘the Code’) defines ‘operational debt’ as claims arising in respect of provision of goods or services. The term ‘claim’ under the Code refers to right to payment or right to remedy for breach of contract if such breach gives rise to a right to payment. Due to the scheme of...
UKSC on Parent’s Liability for Environmental Violations of Foreign Subsidiaries
[Raghav Harini N is a final year student at ILS Law College, Pune] In a recent landmark decision in Okpabi v Royal Dutch Shell Plc, the Supreme Court of United Kingdom (UK) has permitted a jurisdiction appeal against a UK-domiciled parent company for the environmental violations of its Nigerian subsidiary. This judgment makes a significant contribution to the fields of human rights, environmental...
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